If all income is consumed in a year, then
A) investment spending will increase.
B) income next year will increase.
C) investment spending will be zero.
D) any investment spending will be done by the government.

Question

Quizplus · Accepted Answer

If all income is consumed in a year, it means that no savings are available for private investment, leading to a situation where investment spending (from private savings) would be zero.

If All Income Is Consumed in a Year, Then